There was a forecast that the Korean government will postpone investments planned in the United States this year due to the weak won.
On the 20th (local time), Bloomberg reported that Korea should delay the $20 billion it planned to invest in the United States until conditions in the foreign exchange market stabilize.
Citing remarks by a person familiar with the matter, Bloomberg said that capital outflows by corporations and individual investors are weighing on the exchange rate but will stabilize soon, while not addressing whether the Korean government has a particular level in mind.
It also said that on the 14th, U.S. Treasury Secretary Scott Bessent's so-called verbal intervention message to Korea's foreign exchange market—saying it was "not consistent with Korea's strong fundamentals"—may have contributed in part to the won's appreciation, but that it is too early to make a definitive assessment of the effect.
In November last year, Korea and the United States, in follow-up talks on the tariff, agreed that of Korea's $350 billion in investments in the United States, $150 billion would be allocated to the shipbuilding sector and $200 billion would be invested over the long term within an annual limit of $20 billion.
Reports that Korea may delay its U.S.-bound investments scheduled for this year due to exchange rate pressure align with the government's existing position that the size and start date of U.S. investments can be set flexibly.
The memorandum of understanding (MOU) on U.S. investments concluded by Korea and the United States last year included provisions allowing requests to adjust the timing or scale of payments when there are concerns about instability in the foreign exchange market.
On the 16th, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol, in an interview with Reuters, was asked whether U.S.-bound investments could begin in the first half and said, "That doesn't seem likely," adding, "At least this year, under the current foreign exchange market conditions, we cannot invest large amounts."
Bloomberg News asked the Ministry of Economy and Finance about the possibility of postponing this year's U.S.-bound investments, and reported that the ministry again emphasized Deputy Prime Minister Koo's existing position that it is unlikely Korea's U.S. investment project will proceed in the first half.